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WORKING IN SPAIN

NEW LAWS: How it’s now easier for foreigners to work in Spain

Spain has amended its immigration laws to make it easier for non-EU citizens (UK nationals, Americans etc) to work in the country in a bid to address some of its most pressing labour shortages. Here are the changes, the reasons why they’re being introduced and more.

spain new work visa laws
According to Spain’s Social Security Minister José Luis Escrivá, the measures will "improve the Spanish migratory model and its procedures, which are often slow and unsuitable", admitting that they have "high social and economic costs for Spain". (Photo by LLUIS GENE / AFP)

What are the new changes in a nutshell?

The Spanish government has amended its laws relating to the rights and freedoms of non-EU foreigners in the country, as a means of resolving the bureaucratic obstacles which often prevent Spain from using its migrant population to cover labour shortages.

There are three main changes: 

  • Undocumented third-country nationals who have lived in Spain for two years or more can seek temporary residency papers.
  • Non-EU students will be able to work up to 30 hours a week while studying, and to start work in Spain at the end of their studies.
  • Non-EU nationals will be able to obtain a work visa to come to Spain more easily and take up jobs in areas facing labour shortages i.e. tourism, construction, agriculture.

Why is the Spanish government introducing these changes?

Spain may have the highest unemployment rate in the EU (around 13 percent, just under 3 million people) but it is also struggling to cover thousands of job positions.

This paradoxical situation is down to a combination of factors, not least the low wages and unstable working conditions that are pervasive in Spain’s labour market. 

READ MORE: 

Couple that with an inflexible bureaucratic system which is counterproductive to Spain’s economy and labour market and you have a situation where Spaniards would rather pass on exploitative jobs and stay at home, and foreigners who are eager to work regardless of the poor conditions/pay cannot because the law won’t allow them to.

If we take a closer look at the three main changes listed above:

Undocumented migrants in Spain, those who arrive in the country without first applying for a residency or work permit, have up to now found themselves trapped in a situation where for years they can’t apply for jobs with social security and other workers’ rights, leaving them with little option but to work in the black. 

Third-country higher education students in Spain who completed a degree, Masters or Phd up to now didn’t have their residency in Spain guaranteed after completing their studies, having to instead apply for residency and renew their permit regularly, contributing to a brain drain of talent that Spain trained and then didn’t harness. Those on student visas could also only work a maximum of 20 hours a week previously.

And as for non-EU people applying for a work visa in Spain, up to now the only way for third-country nationals to be hired from overseas for a contract job was if employers could not find an EU candidate for the position or if the job was on Spain’s shortage occupation list, which is made up almost entirely by jobs in the maritime and shipping industry. In reality, there are many industries that are central to Spain’s economy that are struggling to find workers.

The Spanish government has finally realised how these inflexible laws are proving extremely damaging to its economy at a time when employers are struggling to find tens of thousands of workers for the tourism, construction and agriculture industries. 

According to Spain’s Social Security Minister José Luis Escrivá, the measures will “improve the Spanish migratory model and its procedures, which are often slow and unsuitable”, admitting that they have “high social and economic costs for Spain”.

When will these new laws come into force?

Although the new laws were published in Spain’s state bulletin (BOE) on Wednesday July 27th, the legislation is set to come into force on August 15th 2022.  

Is there anything else I should know?

When it comes to Spanish politics, what Spain says it will do and then actually does are often two very different things. 

Take for example the alleged streamlining of degree validation for highly-skilled professionals such as non-EU doctors, dentists, engineers and other regulated professions, known in Spain as homologación

People in Spain with non-EU qualifications are currently having to wait two, three, four or even more years for Spain’s bureaucratic labyrinth to get round to validating their qualifications, even though the legal deadline is just six months and there are huge shortages in their expert fields. 

New decrees have promised to address the hold-ups but in reality nothing has changed. A lawyer specialising in helping foreigners with the homologación process told The Local that “unless Spain allocates more budget to employ more competent civil servants to address the problem, nothing will change”. 

However, the latest law change is overall good news for all non-EU foreigners who wish to move to Spain for work in the hospitality and tourism sector, construction or agriculture, including UK nationals, Americans, Australians, South Africans and any other third-country nationals.

The process for applying for a work permit should be considerably easier, but they should not forget that Spain is a country with wages that are lower than other countries in Western Europe and that it doesn’t have a good reputation in terms of work conditions. 

Therefore, their reasons for moving to Spain shouldn’t just be for a job, as this is a country which excels in many other fields (quality of life, weather, culture, people, nature) but generally not work.

READ MORE: The downsides of moving to Spain for work

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PENSIONS

Spain needs 25 million foreign workers to keep its pensions afloat

As the retirement of baby boomers looms, Spain's ageing population and declining birth rate mean the country will need millions of foreign workers to maintain its public pension pot and reinforce the labour market, the Bank of Spain has warned.

Spain needs 25 million foreign workers to keep its pensions afloat

A recent study by the Bank of Spain estimates that the country will need up to 25 million more immigrant workers by 2053 in order to combat demographic ageing and maintain the ratio of workers to pensioners in order to support the pension system.

Without an influx of more foreign workers or sudden increase in the birth rate in Spain, something that seems very unlikely, experts fear that the growing disparity between working age people and pensioners could put the public pensions system in danger in the medium to long-term.

Like in many countries in the western world, the Spanish population is ageing, with the percentage of the population over 65 years of age predicted to peak in 2050, when almost one in three will be 65 years old or older.

READ ALSO: Spain’s over 65s exceed 20 percent of the population for the first time

By 2035 around one in four (26.0 percent) of Spaniards are expected to be 65 or older. That figure is currently around one fifth of the population.

Furthermore, this is compounded by falling birth rates. Spain’s birth rate hit a record low in 2023, falling to its lowest level since records began, according to INE data. Spain’s fertility rate is the second lowest in the European Union, with Eurostat figures showing there were just 1.19 births per woman in Spain in 2021, compared with 1.13 in Malta and 1.25 in Italy.

If nothing changes, the current ratio of 3.8 people of working age for every pensioner is predicted to plummet to just 2.1 by 2053, according to INE projections.

Maintaining this ratio seems unlikely moving forward, according to the report’s conclusions, something that would put pressure on pensions without significantly increasing social security contributions among working age people.

READ ALSO: Older and more diverse: What Spain’s population will be like in 50 years

The Bank of Spain report noted that “immigrants have high labour participation rates, generally above those of natives – in 2022, 70 percent and 56.5 percent, respectively.”

In three decades’ time, the INE expects Spain to have 14.8 million pensioners, 18 million Spanish nationals of working age and 12 million foreigners. To maintain the ratio, the Bank of Spain forecasts that the working immigrant population would have to rise by more than 25 million to a total of 37 million overall.

Of course, the arrival of 25 million working-age foreigners seems unlikely, if not impossible. To achieve this, around 1 million net migrants would have to enter Spain each year (discounting departures), a figure unprecedented in recent history. To put the figure in context, between 2002 and 2022 net arrivals in Spain reached five million, roughly five times less than what would be necessary to maintain the balance between workers and pensioners.

READ ALSO: ‘Homologación’ – How Spain is ruining the careers of thousands of qualified foreigners

Putting the economics aside, even if such an increase were statistically plausible, such a surge in net migration would be contentious both politically and socially. And it’s not even certain that increased migrant flows would be able to fill the gap in working age people and bolster public pensions: “The capacity of migratory flows to significantly mitigate the process of population ageing is limited,” the Bank of Spain warned in its report. 

What these projections suggest is that Spain’s public pension system will, in coming decades, likely have to be sustained by the contribution of fewer workers overall. This likely means higher social security payments. “Migratory flows have been very dynamic in recent years, but it does not seem likely that they can avoid the process of population ageing… nor completely resolve the imbalances that could arise in the Spanish labour market in the future,” the report stated.

The problem of ageing will also be transferred to the labour market and the types of jobs filled in the future. Increased migratory flows will soften the effect, but the labour characteristics of migrants coming to Spain may not match the job market in the coming decades. The jobs of the future, increasingly digital, will likely require qualifications that many of the migrants expected to arrive in the coming years do not have.

Consequently, the Bank of Spain suggests that “without significant changes in the nature of migratory flows, it does not seem likely that… [they] can completely resolve the mismatches between labour supply and demand that could occur in the coming years in the Spanish labour market.”

READ ALSO: 

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